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Doc 224899

Doc 224899
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  • Northern Dynasty: Price Target Soars on Growing Takeover Potential [View article]
    There seems to be a heck of a lot of political push back against developing Pebble, based on a quick review of the recent news.
    Mar 25 11:35 AM | Likes Like |Link to Comment
  • PBC's Proposal for International Monetary Reform [View article]
    It is time for the US government to begin formulating a new foreign policy hinge to take the place of "dollar diplomacy", because "dollar diplomacy" will be even less effective when the dollar is no longer a global reserve currency.

    If US currency will no longer be the global reserve currency, then the US government had better stop wasting time bickering about bonuses and micromanagement plans, and put on the big girl panties needed to address foreign policy.

    It is unlikely that our dollar diplomacy foreign policy, based on attempts to bribe people who hate us into acting like they tolerate us, is going to carry us much farther, so it's time to look for a new approach. We should consider something other nations are likely to understand and react to in a predictable fashion, such as "We don't care what you believe or say. Do what we want or we'll bomb something you don't want to lose, and we'll use stealth technology so you can't pin it on us."

    Too bad Hillary Clinton is our new Secretary of State. Just when the job became crucial we get a Secretary of State nobody else in the world trusts, whose credibility with foreign governments is limited, who alienates our own military with every breath she takes, who has inspired the majority of Americans to have an unshakable animosity for her, and who seems to have the troubling capacity to believe anything she finds it convenient to say.

    China isn't talking about a "neutral" reserve currency. China is talking about a reserve currency that favors China, and that reduces the risk China incurs by holding US treasuries.

    There were rumbles and murmers a month or two ago about a proposed Chinese+Russian currency at least partially backed by gold. We should direct our Federal Reserve to review its policies with respect to gold, to stop selling gold, and to buy more gold.



    Mar 25 11:08 AM | Likes Like |Link to Comment
  • Geithner: A Fool with a Plan? And Is That a Bad Thing? [View article]
    The fool's plan hits a brick wall at the point when FDIC (using taxpayer dollars) has to kick in for losses due to defaults on the sub-prime mortgages.

    Up to this point, the only people who would get hurt by bad sub-prime mortgages were the stupid people who couldn't afford to buy houses but who went for a mortgage they couldn't afford anyway (and probably didn't have the vaguest understanding of, and who probably were not mentally competent to sign because they were incapable of informed consent), the stupid people who gave them ballon mortgages they obviously would default on, and the dummies who bought the bundled bad loan paper. These are the people we should allow to be hurt, because getting hurt is one of the natural consequences of being stupid, and not bail the dummies out.

    Now, the Obama/Geithner plan finds a way to hurt all taxpayers by guaranteeing the bad loan paper through FDIC.

    The other "fools" involved in this plan would be the "private investors" (investment banks, hedge funds), who will willingly buy the toxic loan paper that nobody in their right mind wants.
    Mar 23 04:22 PM | 4 Likes Like |Link to Comment
  • Why a Global Financial Regulator Is a Bad idea [View article]
    The reason why a global financial regulator is a bad idea is: One person or one agency cannot be allowed to have that much power.
    Mar 23 10:51 AM | 1 Like Like |Link to Comment
  • AIG's (AIG) bonuses were almost extortion, Rep. Barney Frank tells Face The Nation. "They said, "'We know what you need to know and we will quit if you don't bribe us.'" Sue them, he says.  [View news story]
    Barney Frank doesn't know what we need him to know, and he refuses to leave. The man understands leverage, distortion for political gain, and the blame game.

    At least the AIG executives knew how to do something that had some sort of value.
    Mar 23 02:10 AM | 1 Like Like |Link to Comment
  • The Toxic Assets Plan - Yes, It's a Subsidy [View article]
    If I find out that a fund I'm invested in is buying some of this Obama/Geithner toxic loan paper, I'm pulling my money out.
    Mar 23 01:50 AM | Likes Like |Link to Comment
  • The Toxic Assets Plan - Yes, It's a Subsidy [View article]
    Here's a suggestion: just tell the stupid, grandiose, entitled slugs who borrowed money for houses they couldn't afford that they screwed up, they're in trouble, and they can't have a house.

    Mar 23 01:50 AM | 1 Like Like |Link to Comment
  • The Toxic Assets Plan - Yes, It's a Subsidy [View article]
    Didn't Bernie Madoff just get convicted of something no less legitimate than this new plan?

    Mar 23 01:50 AM | Likes Like |Link to Comment
  • The Toxic Assets Plan - Yes, It's a Subsidy [View article]
    Is the president going to somehow "force" private investors to put money in this scheme? If not, why would private investors go for such a bad deal?

    Mar 23 01:49 AM | Likes Like |Link to Comment
  • The Toxic Assets Plan - Yes, It's a Subsidy [View article]
    If there was any value to be found in this bad loan paper, private investors would have sniffed it out long ago.

    Mar 23 01:49 AM | 2 Likes Like |Link to Comment
  • Is the Market Still Digesting the Fed's Wednesday Move? [View article]
    Yes, the market is still digesting the Fed's Wednesday move to buy long term treasuries.

    People don't know what it means to them, to their favorite little list of investments, because nobody has ever been down this road before.

    Overall, nobody wants to make the mistake of being foolishly confident about a sinking ship in a falling tide. People are afraid to make the mistake of being erroneously encouraged.

    Because of this skeptical mindset, people will assume the Fed's move Wednesday will have a net negative impact, and they'll do whatever they can in an effort to not get whacked by whatever bad consequences they can foresee.

    Common decisions we can expect to see from investors will include making trades that offset anticipated losses due to inflation and due to devaluation of the dollar. Gold will look relatively safe, commodities will look relatively safe, exports will look relatively safe.
    Mar 20 10:26 AM | 1 Like Like |Link to Comment
  • "After watching the Liddy debacle on C-SPAN, it has become painfully clear to me that our federal government is a joke. Those jerks were personally attacking a man working very hard to pull our collective butts out of the fire, all at great risk to his reputation, and for only $1 per year. I was angered and saddened."  [View news story]
    I very much appreciate your point, and your skill in making it.

    However, my dear Fox, "we" are not trying to destroy AIG. You are correct that "we" own it. It is being taken down by the majority party because raging against corporate executives and protesting against corporate profits is potent political theatre that serves their purposes right now. We own AIG, but we can't protect it from our own government.

    We are all being held captive, having been kidnapped and ransomed by the majority party, who won't release us until we've agreed to the ransom amount (taxes) that they demand. No matter how much we protest the kidnapping, or challenge the kidnappers, a price will have to be paid unless we can rescue ourselves from their hold on us.


    On Mar 19 04:10 PM Stone Fox Capital wrote:

    > Congress is a joke. We own AIG. Why are we trying to destroy it now?
    Mar 19 05:41 PM | 1 Like Like |Link to Comment
  • What the Fed's Announcement Means for Gold [View article]
    The Fed's announcement means that gold will...will what? Gold gained around $50 per ounce after the March 18 Fed decision was announced, and held that gain during the same hours when a similar gain in the stock market eroded in the hour before the market closed. The Fed's announcement dropped the USDI immediately.

    Ultimately, gold gained and the dollar lost. I think that gold will now be blamed for devaluing the dollar, by those who want to divert attention from the way America's monetary policy is having the net effect of devaluing America's currency! The Crash Protection Team will now try and take down gold with shorts in the commodeties exchange.

    Actually, the Fed is devaluing the dollar by making yet another commitment to the printing of another big pile of fiat money, in the same way that (but by a different method than) the Swiss just devalued their franc by trading it against the euro last week.

    Behind the scenes, in different leading countries, monetary policy planners may actually be racing to compete in the deliberate process of devaluing their national currencies, though public policy statements probably skirt this issue in the United States.

    Remember, Peter Cooper makes money when Dubai makes money. He has been an arabophile for years, to put a name on it (though Arabs like to pretend they are Persian, which makes actual Persians irate ... a different topic altogether). He is likely to be rooting for a pan-arabian gold-backed currency that will compete with the dollar for the status of the standard currency for international trade. Consequently, we should question what his motivation might be for even asking this question rather than assume his loyalties and sentiments are the same as ours.

    Speculate with me just a few more moments, and we may arrive at the conclusion that the unintended consequence of the Feds decision yesterday may be to hasten the day when a gold-backed currency challenges the dollar.
    Mar 19 08:59 AM | 6 Likes Like |Link to Comment
  • Volume Gives Shorts the Upper Hand [View article]
    Some of the SPY volume will go towards "safe havens", like GLD or SH. GLD is, in some ways, less pessamistic than SH, to people who have put their faith in SPY.

    People holding SPY will want to sell as the price rises so they can cash out before the next big slump in the broad market.

    Fewer and fewer people will be willing to buy those SPY shares as the price rises, because the likelihood of profiting from the buy decreases as the price goes up. Volume shrinks, as we're seeing now.

    People wanting to get their money out of SPY are going to start freaking out as fewer and fewer people are willing to buy their shares, and SPY will tank. There will be fewer and fewer people willing to put their faith in the market as it slides, so more money will wind up on the sidelines and overall market volume will still be relatively low due to lack of trust.

    Mar 18 11:56 AM | 1 Like Like |Link to Comment
  • Central Fund of Canada: Going for Gold [View article]
    The annual pattern for gold bullion prices has a slump in March, then it generally spikes at the end of March or the first few days of April.

    The six to eight week cycle Peter De Graff refers to is in synch with that historical pattern, if a one month surge begins with a spike that starts around the last few days of March.

    De Graff's last chart in this article, showing a breakout for CEF right around the end of March, could be comfortably projected right on top of the first chart in the article that refers to the 6 to 8 week cycle, especially with respect to a currently funnelling price channel over the past 4 months.

    There are a bunch of gold miner stocks that all show the same price channel pattern ending at the end of March or first few days of April. If you don't believe me, go look.

    Interestingly, Yellowhoard's predictions ARE in synch with the historical pattern with a spike around the first days of April, suggesting that he's seen (and refers to) the same annual gold price chart I have seen.
    Mar 18 10:57 AM | 1 Like Like |Link to Comment
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